INCOME TAXES

12 Months Ended

Aug. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES [Text Block]

12. INCOME TAXES

The following table reconciles the income tax benefit at the U.S. Federal statutory income tax rates to income tax benefit at the Company's effective tax rates at August 31, 2022 and 2021:

		August 31, 2022			August 31, 2021
Income (loss) before taxes	$	1,974,407		$	(389,368	)
Statutory tax rate		21.0%			21.0%
Expected income tax expense (recovery)		414,625			(81,767	)
Non-deductible items		34,257			62,515
Change in enacted rates and other		(26,649	)		3,952
Change in valuation allowance		(422,234	)		15,300
Income tax expense (recovery)	$	-		$	-

Deferred taxes reflect the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes. Deferred tax assets (liabilities) at August 31, 2022 and 2021 are comprised of the following:

		August 31, 2022		August 31, 2021
Net operating loss carry forwards	$	2,154,456	$	2,795,131
Marketable securities		207,613		2,549
Mineral property		64,364		50,987
Capital loss carry forwards		4,526		4,526
		2,430,960		2,853,193
Valuation allowance		2,430,960		2,853,193
Deferred tax assets (liabilities)	$	-	$	-

The Company has net operating loss carry forwards of approximately $10,259,316 (2021 - $14,266,681) a portion of which may be carried forward up to 20 years to apply against future taxable income for US tax purposes, subject to the final determination by the taxation authority, expiring in the following years. Future tax assets have not been recognized because it is not probable that future taxable profit will be available against which the Company can utilize the benefits therefrom.

The expiry of the Company’s non-capital tax loss carryforwards are as follows:

Expiry Year		Amount
2030	$	1,057,783
2031		-
2032		611,284
2033		379,241
2034		4,641,005
2035		1,207,633
2036		525,587
2037		801,509
2038		650,398
2039		343
2040		-
2041		384,533
Balance – August 31, 2022	$	10,259,316